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WORLDVIEW: Insurance woes β could SA become uninsurable?
In practical terms, many insurance risks in SA have become so great that the insurance industry can no longer shoulder them alone.
The Economist had a chilling article this week on the threat that climate change poses to the insurance industry. The article cited a host of statistics indicating that the risk of catastrophic climate events has risen much faster than the insurance industry anticipated and has put extreme strain on its financial reserves.
Among other things, the article noted that:
- Very costly disasters are becoming more common. Between 1980 and 2015, there were, on average, five events causing over $1bn (inflation-adjusted) in damage a year in America. Between 2016 and 2018, there were, on average, 16.
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